Canadian-listed oil and gas firm Talisman Energy has agreed a $1.5 billion (£968 million) deal to sell off nearly half of its North Sea business to Chinese energy firm Sinopec.

Under the terms of the deal, Sinopec, China's largest largest energy and petrochemical company in revenue terms, will take a 49 per cent equity interest in Talisman's UK North Sea business based in Aberdeen.

The deal with Sinopec is not expected to lead to any reduction in headcount.

Calgary-based Talisman's president and chief executive, John Manzoni, said the deal would create a joint venture with greater resources to improve oil output from Talisman's 11 North Sea assets and pursue new exploration opportunities.

The deal will also see Talisman return $500 million to shareholders through a share buyback scheme.

Talisman also has major interests in shale gas extraction in North America and South East Asia as well as production and exploration assets in South America, Northern Iraq, Algeria and Poland.

A drop in the price of shale gas in North America due to oversupply prompted Talisman to enter into a divestment programme which has netted the firm $2.5 billion so far this year.

Meanwhile, Chinese state oil firm CNOOC has also announced a $15.1 billion offer for Canadian oil and gas firm, Nexen, which owns the Buzzard oil field – the largest operating field in the North Sea.